The market share of foreign banks in China might double to about 4 percent in 2016, Kelvin Leung, Greater China banking and capital markets leader for Ernst & Young, said Monday.
The accounting firm surveyed CEOs and senior executives from 38 foreign banks on the mainland between July and September last year and found that overseas lenders had just 1.82 percent of the market.
But Jack Chan, Ernst & Young’s managing partner in financial services for Greater China, said the lenders’ growth prospects are good because China is likely to advance interest rate liberalization and international use of the yuan.
The survey also found that interest in investing in mainland banks was falling among about three-quarters of the foreign players due to recovering economies abroad and tougher capital regulations laid down in BASEL III.
But Leung stressed that these foreign banks are not cutting their mainland investment activities because most still rank China among their top three markets.
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